Saudi Arabia and Russia have reached an agreement on freezing oil production. The final decision regarding freezing production of Saudi Arabia will not depend on Iran’s stance but rather on its own oil production. Alexander Novak, Russia’s Oil Chief, confirmed that the talks with Saudi Oil Minister Ali al-Naimi took place. However, Novak chose not to provide any further information about the oil freeze, waiting for the consultations with other oil producering countries at Doha. Member States of the Organisation of Petroleum Exporting Countries (OPEC), Russia and other exporters will meet on 17 April in Doha to discuss freezing oil production level in January, the latest attempt to support crude oil prices in an over saturated market. Saudi Arabia insisted that they will engage in a capping production only if Iran do the same, a proposal that Tehran rejected considering it ‘ridiculous’. However, Novak did say that he was optimistic about achieving an agreement on a freeze.
Saudi Arabia and Russia are the largest exporters of crude oil. After the agreement news, the price of Brent oil climbed to $43.53. The price of a barrel of oil dropped by over 70 per cent in the last 18 months, affecting the world wide industries and the economy.